SOFAZ assets further decline
The assets of Azerbaijan’s state oil fund SOFAZ which is in charge of accumulating and managing the country's oil and gas revenues, decreased by 6.38 percent compared to early 2015 to $34.74 billion.
SOFAZ’s revenues totaled 5.54 billion manats, while budget expenditures - 6.4 billion manats, according to the report covering the period of January-September 2015.
The revenues worth 5.49 billion manats were received as a result of the implementation of oil and gas agreements, including 5.48 billion manats from the sale of profit oil and gas, 8.4 million manat as transit payments.
SOFAZ’s income from the management of its own funds amounted to 51.2 million manats during the reporting period.
SOFAZ’s extra-budgetary revenues related to the revaluation of foreign exchange totaled 7.83 billion manat.
SOFAZ’s transfers to the state budget hit 5.65 billion manats.
The expenditures in the amount of 130.4 million manats were directed to improve the social-economic condition of refugees and internally displaced persons, 67.8 million manats were directed to finance the reconstruction of the Samur-Absheron irrigation system.
Some 22.6 million manats were directed to finance the Baku-Tbilisi-Kars new railway construction project and 16.8 million manats were directed for Azerbaijani students to study as part of the state program for 2007-2015.
SOFAZ’s expenditures to finance the state’s share in the Southern Gas Corridor joint-stock company established as part of TANAP and TAP projects to ensure Azerbaijani gas supply to Europe amounted to 489.3 million manats in January-September.
SOFAZ’s management expenditures hit 20.2 million manats.
SOFAZ was established in 1999 with assets of $271 million.
Based on SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
The main purposes of the fund are the accumulation of funds and the placement of these fund's assets abroad to minimize negative trends in the economy by preventing “Dutch disease”.
This ensures savings for future generations and the continuity of the country's current socio-economic standard.
The official exchange rate is 1.049 AZN/USD on October 26.
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